Monzo for personal budget balancing

(josh) #1

Myself and a lot of friends use Monzo prepaid (almost predominantly) as a way to regulate spending (having an amount to transfer every week).

I got my Current Account last night and it dawned on me that now it won’t serve that purpose. Within my own filter bubble and network I know >50% of people are using Monzo like this, are we in the overall minority?

If not with Current Account, how could those use Monzo to help get better and personal spending keep it up?

(Leena) #2

Hi Josh, I think the key is forming a strong monthly budget. I think of Monzo as my cash envelope system. Borrow this book from the library, it’s really interesting and turned my life around. It’s called the Total Money Makeover by Dave Ramsey.

(josh) #3

I think the thing I’ve loved (and recommend to friends about Monzo) is it’s a bit more enforced. Sure you can still topup whenever you like but it’s a step you’ve got to do.

I’ll check that book out though, thank you!

(Marta) #4

Well, it might be called Current Account, but why wouldn’t you use it exactly the same as you used prepaid card? :slight_smile: Surely, having ability to setup standing orders (as an example of ‘bank’ feature) doesn’t really impact you, since you don’t have to use it at all.

(Bruce) #5

Yeah basically works in exactly the same way (well it will when it launches with full set of functionality)… you don’t have to put your salary into it, though I’m sure :monzo: would like you to :slight_smile:

(Nick) #6

Use the “Targets” to manage your money - thats what they are there for.

Simply set yourself a monthly target (maybe split it amongst other categories) and work to that. If you stay within the target then all your other (non targeted) money is used to pay your direct debits and standing orders.


(Amelia Ikeda) #7

Not quite that simple in reality — that requires already being in control of your spending and having very little debts or bills!

Also, unexpected bills, emergencies, payments, and so on all contribute to this one. There’s also perpetual debt, aka being in an overdraft every month on your non-monzo account, where your outgoing is approximately equal to your incoming salary, and you keep losing money from interest/fees. In that situation, you really want to prioritize outgoing DDs over everything else!

(Oliver Ford) #8

Just keep your existing current account and switch your existing standing order from Monzo’s account and the reference number for your prepaid account to be a standing order into your :monzo: current account.

Keep overdraft disabled if/when it’s an option, and you can keep using it as a forced budget if that’s what you want, just now also with the ability to send to other bank accounts, pay by DD, etc.

(system) closed #9

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